(A Ministry of CRISTA Ministries) Consolidated Financial Statements
Table of Contents Independent Auditor s Report 1 2 Consolidated Financial Statements: Consolidated Balance Sheets 3 Consolidated Statements of Unrestricted Activities 4 Consolidated Statements of Changes in Net Assets 5 Consolidated Statements of Cash Flows 6 Notes to Consolidated Financial Statements 7 15 Supplementary Information: Consolidated Schedules of Functional Expenses 16 17 Consolidating Balance Sheet 18 Consolidating Schedule of Activities 19 Schedule of Functional Expenses World Concern Development Organization 20 Page
Independent Auditor s Report To the Board of Trustees CRISTA Ministries World Concern Development Organization Shoreline, Washington We have audited the accompanying consolidated financial statements of World Concern (a ministry of CRISTA Ministries) and World Concern Development Organization (collectively, the Organization ) which comprise the consolidated balance sheets as of June 30, 2016 and 2015, and the related consolidated statements of unrestricted activities, changes in net assets and cash flows for the years then ended, and the related notes to the consolidated financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. T: 425-454-4919 T: 800-504-8747 F: 425-454-4620 10900 NE 4th St Suite 1700 Bellevue WA 98004 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. clarknuber.com
Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Organization as of June 30, 2016 and 2015, and the results of its unrestricted activities and changes in net assets, and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The supplementary information on pages 16 20 is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole. Certified Public Accountants October 13, 2016 2
Consolidated Balance Sheets June 30, 2016 and 2015 Assets Current Assets: Cash and cash equivalents (Note 2) $ 4,575 $ 4,072 Grants receivable 137 446 Receivable from CRISTA Ministries 2,192 1,891 Pledges receivable, net (Note 3) 228 365 Prepaid expenses and supplies 18 17 Total Current Assets 7,150 6,791 Investments 9 Long term pledges receivable, net (Note 3) 182 312 Property and equipment used in current ministries, net (Note 5) 143 158 Development loans receivable, net (Note 6) 3,077 3,806 Overseas assets 188 210 Total Assets $ 10,740 $ 11,286 Liabilities and Net Assets Current Liabilities: Accounts payable and accrued expenses $ 2,381 $ 2,606 Total Current Liabilities 2,381 2,606 Commitments and contingencies (Note 8) Net Assets: Unrestricted General 2,411 2,291 Represented by property and equipment owned by the Organization 143 158 Total unrestricted assets 2,554 2,449 Temporarily restricted Restricted for program activities 5,805 6,231 Total Net Assets 8,359 8,680 Total Liabilities and Net Assets $ 10,740 $ 11,286 See accompanying notes. 3
Consolidated Statements of Unrestricted Activities Revenues, Gains and Losses: Contributions $ 6,061 $ 6,326 Contributions released from restriction 7,095 7,921 Gifts in kind (Note 7) 16,232 10,677 Government grants 214 1,520 Income on investments and loans 914 1,032 Foreign currency exchange losses (178) (66) Miscellaneous income 31 11 Total Revenues, Gains and Losses 30,369 27,421 Expenses: Program services Program 9,681 12,311 Gifts in kind (Note 7) 16,232 10,677 Total program services 25,913 22,988 Supporting services Fundraising and promotion 3,059 2,966 Management and general 1,292 1,267 Total supporting services 4,351 4,233 Total Expenses 30,264 27,221 Change in Unrestricted Net Assets $ 105 $ 200 See accompanying notes. 4
Consolidated Statements of Changes in Net Assets Unrestricted Net Assets: Total unrestricted revenue, gains, and losses $ 23,274 $ 19,500 Contributions released from restrictions 7,095 7,921 Total unrestricted expenses (30,264) (27,221) Change in Unrestricted Net Assets 105 200 Temporarily Restricted Net Assets: Contributions 6,931 7,697 Loss from micro enterprise loan program (262) Contributions released from restrictions (7,095) (7,921) Change in Temporarily Restricted Net Assets (426) (224) Total Change in Net Assets (321) (24) Net assets, beginning of year 8,680 8,704 Net Assets, End of Year $ 8,359 $ 8,680 See accompanying notes. 5
Consolidated Statements of Cash Flows Cash Flows From Operating Activities: Change in net assets $ (321) $ (24) Adjustments to reconcile change in net assets to net cash provided by operating activities Noncash activity: Depreciation 15 12 Loss from Micro enterprise loan program 262 Transfer of investments to CRISTA Ministries 9 Changes in operating assets and liabilities: Grants receivable 309 694 Receivable from CRISTA Ministries (301) (1,065) Pledges receivable 267 82 Prepaid expenses and supplies (1) (11) Development loans receivable 467 686 Overseas assets 22 137 Accounts payable and accrued expenses (225) (40) Net Cash Provided by Operating Activities 503 471 Net Change in Cash and Cash Equivalents 503 471 Cash and Cash Equivalents: Beginning of year 4,072 3,601 End of Year $ 4,575 $ 4,072 Supplementary Disclosure of Cash Flow Information: Transfer of investments to CRISTA Ministries $ 9 $ See accompanying notes. 6
Notes to Consolidated Financial Statements Note 1 Nature of Operations and Significant Accounting Policies Business Purpose and Organization World Concern, a ministry of CRISTA Ministries ( CRISTA ), a not for profit organization, is an international disaster response and development agency working with people in need around the world. World Concern s purpose is to bring life, opportunity and hope to the poor (in body and spirit) by working with them in the developing world to transform lives, strengthen families, and build sustainability. World Concern Development Organization ( WCDO ) is the non ecclesiastical arm of World Concern and shares common facilities and management with World Concern. WCDO is a not for profit organization responsible for administering government and other grants. Principles of Consolidation The consolidated financial statements include the accounts of World Concern and WCDO (collectively, the Organization ). All significant inter organization transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash in excess of daily requirements is invested in interest bearing instruments with maturities of three months or less. Such investments are considered to be cash equivalents, except for those included in the Organization s investment portfolio and subject to its investment policy. Grants Receivable Grants receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to grants receivable. Grants receivable are due primarily from government agencies and are deemed by management to be fully collectible. Therefore, an allowance for doubtful accounts was not recorded at June 30, 2016 and 2015. Pledges Receivable Pledges receivable, unconditional promises to give, that are expected to be collected within one year are recorded at net realizable value. Management provides for probable uncollectible amounts through a charge to contribution revenue and a credit to a valuation allowance based on historical trends. Unconditional promises to give that are expected to be collected in future years are recorded at the present value of their estimated future cash flows. The discounts on these amounts are computed using risk adjusted interest rates applicable to the years in which the promises are received. A present value discount was deemed immaterial at June 30, 2016 and 2015. Overseas Assets Overseas assets consist of prepaid expenses, deposits and miscellaneous receivables of the overseas offices. 7
Notes to Consolidated Financial Statements Note 1 Continued Inventory Noncash gifts of medicine, clothing, agricultural supplies, medical supplies, and other commodities are donated to World Concern for distribution to overseas development projects. Such gifts are recorded, at estimated fair value, as inventory and revenue at the time received and as a reduction of inventory and as relief and development expense when the distributing agency has received the goods. There was no inventory on hand at June 30, 2016 and 2015. Property and Equipment Used in Current Ministries and Depreciation The Organization capitalizes domestic assets with a cost greater than $3,000 and an estimated useful life of three or more years. Purchased property is carried at cost. Donated property is recorded at fair value when received. Depreciation is computed using the straight line method based on estimated useful lives as follows: Buildings and improvements Furniture and equipment Vehicles 5 50 years 3 10 years 3 7 years Overseas purchases of property and equipment are not considered significant and are included as expenses in the consolidated statements of unrestricted activities and changes in net assets in the period incurred. Investments Investments consist of mutual funds. Investments are stated at fair value based on quoted market prices at the date of the consolidated financial statements. Concentration of Credit Risk Financial instruments that potentially subject the Organization to concentration of credit risk consist primarily of cash and cash equivalents. Cash and cash equivalents are held with banks located in and outside of the United States. As of June 30, 2016 and 2015, 55% and 56%, respectively, of cash and cash equivalents were held in banks outside of the United States. Cash and cash equivalents may at times exceed FDIC and SIPC insurance limits. Development Loans Receivable Development loans receivable as of June 30, 2016, represent loans outstanding under the Micro enterprise Loan Program (MLP) in the country of Bangladesh, while development loans receivable as of June 30, 2015, represent loans outstanding under the MLP in the countries of Bangladesh and Haiti. The purpose of the MLP is to assist impoverished persons to become self reliant, successful entrepreneurs. The MLP is administered in accordance with guidelines published by World Concern and is tailored to specific conditions of the host country. The majority of these loans mature in one to two years. Based on management s intent and ability to reinvest collected amounts in the MLP in those countries, the balance has been classified as a long term receivable. During the year ended June 30, 2016, the MLP was discontinued in Haiti, which resulted in a write off of outstanding Haiti development loans receivable totaling $262,000. This write off is reflected as a loss from the MLP in the change in temporarily restricted net assets in the consolidated statements of changes in net assets. Basis of Presentation Net assets, revenues, gains and losses are classified based on the existence or absence of donorimposed restrictions. Accordingly, the net assets of the Organization and changes therein are classified and reported as follows: Unrestricted Net Assets Unrestricted net assets include all net assets on which there are no donor imposed restrictions for use, or such donor imposed restrictions were temporary and expired or were met during the current or previous years. 8
Notes to Consolidated Financial Statements Note 1 Continued Temporarily Restricted Net Assets Net assets subject to donor imposed restrictions that will be met either by actions of the Organization or the passage of time. Temporarily restricted net assets are restricted for program activities at June 30, 2016 and 2015. Permanently Restricted Net Assets Net assets subject to donor imposed restrictions that they be maintained permanently by the Organization. The Organization had no permanently restricted net assets at June 30, 2016 and 2015. Revenues are reported as increases in unrestricted net assets unless the use of the related assets is limited by donorimposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains and losses on investments and other assets or liabilities are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor stipulation or by law. Expirations of temporary restrictions on net assets (i.e., the donor stipulated purpose has been fulfilled or the stipulated time period has lapsed) are reported as reclassifications between the applicable classes of net assets. Contributions where the restrictions are satisfied within the same year are reported as unrestricted revenue. Revenues and Gains Earned revenues during the year consist of fees for services, government grants, and miscellaneous income. Earned revenue is recognized in the period the service is performed. Government grant revenue is recognized in the period the related expenses are incurred. Contributions, including unconditional promises to give, are recognized as revenues in the period received. Contributions also include noncash gifts, which are valued at estimated fair value at the date of gift. Functional Allocation of Expenses The cost of providing program, fundraising and promotion, and management and general services of the Organization has been summarized on a functional basis in the consolidated statements of unrestricted activities and the consolidated schedules of functional expenses. Accordingly, certain costs have been allocated between program services, fundraising and promotion, and management and general expenses based on usage, square footage, or direct identification. Federal Income Taxes The Internal Revenue Service (IRS) has determined that the operations of World Concern, as a ministry of CRISTA Ministries, and WCDO are exempt from income taxes under Section 501(c)(3) and 509(a)(1) of the Internal Revenue Code. Accordingly, no provision has been made for federal income tax in the accompanying consolidated financial statements. There are open tax years that may be subject to IRS review; however, management has determined that no provision for uncertain tax positions is required at June 30, 2016 and 2015. Foreign Currency Translation The functional currency of World Concern s field offices is the local currency in which the offices are located. Assets and liabilities of the offices have been translated into U.S. dollars at year end exchange rates. Revenues and expenses have been translated at average monthly exchange rates. Foreign currency translation losses of $178,000 and $66,000 were recognized for the years ended June 30, 2016 and 2015, respectively, and these amounts are included in the consolidated statements of unrestricted activities. Subsequent Events The Organization has evaluated subsequent events through October 13, 2016, the date on which the financial statements were issued. 9
Notes to Consolidated Financial Statements Note 2 Cash and Cash Equivalents Cash and cash equivalents consisted of the following as of June 30: Cash $ 4,504 $ 3,994 Money market 71 78 Total Cash and Cash Equivalents $ 4,575 $ 4,072 Cash and cash equivalents include $2,523,000 and $2,283,000 at June 30, 2016 and 2015, respectively, of funds on deposit in banks in foreign countries. Note 3 Pledges Receivable Pledges receivable are due as follows as of June 30: Receivables due in less than one year $ 284 $ 489 Receivables due in one to five years 305 527 589 1,016 Less allowance for uncollectible pledges receivable (179) (339) Pledges Receivable, Net $ 410 $ 677 Pledges receivable are presented on the consolidated balance sheets as follows as of June 30: Current assets pledges receivable, net $ 228 $ 365 Long term pledges receivable, net 182 312 Pledges Receivable, Net $ 410 $ 677 10
Notes to Consolidated Financial Statements Note 4 Investments and Fair Value Measurements U.S. GAAP establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows: Level 1 Unadjusted quoted prices available in active markets for identical assets or liabilities; Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or Level 3 Unobservable inputs that are significant to the fair value measurement. A financial instrument s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. These financial instruments were valued using a market approach. Investments held by the Organization at June 30, 2015, all consisted of mutual funds that are valued at quoted market prices in active markets, which represent the net asset value (NAV) of shares held at year end. These investments are classified as Level 1. There were no investments held by the Organization as of June 30, 2016. Note 5 Property and Equipment Used in Current Ministries Property and equipment consisted of the following as of June 30: Buildings and improvements $ 244 $ 244 Less accumulated depreciation (101) (86) Property and Equipment, Net $ 143 $ 158 Note 6 Development Loans Receivable The Organization makes loans under the Micro enterprise Loan Program (MLP) to assist impoverished persons to become self reliant, successful entrepreneurs in the countries of Bangladesh and Haiti. The loans are funded by temporarily restricted contributions, and amounts collected on these loans are reinvested in the MLP to fund future loans. As of June 30, 2016 and 2015, outstanding balances in the MLP represented 29% and 34% of total assets, respectively. 11
Notes to Consolidated Financial Statements Note 6 Continued Development loans receivable, by country, and the allowance for doubtful accounts is as follows as of June 30: In Thousands Receivables from individuals in Bangladesh $ 3,460 $ 3,489 Haiti 906 3,460 4,395 Less allowance for doubtful accounts Beginning balance (589) (421) Provision for loan losses (58) (196) Loans written off 2 28 Loss from Haiti micro enterprise loan program (Note 1) 262 Ending balance (383) (589) Development Loans Receivable, Net $ 3,077 $ 3,806 The following amounts were past due under the MLP as of June 30: In Thousands Less than two years $ 145 $ 622 Two years to five years 156 261 Five years or greater 6 Total Loans Past Due $ 301 $ 889 The average loan size was $247 and $291 as of June 30, 2016 and 2015, respectively. Maturities on the loans range from two months to two years. Allowances for doubtful accounts are established based on prior collection experience, current economic factors and management s review of individual account balances. Loans under the MLP are written off only when they are deemed to be permanently uncollectible, and interest continues to accrue until the loan balances are paid in full. Assessed impairment of certain loans is included in the allowance for doubtful accounts. 12
Notes to Consolidated Financial Statements Note 6 Continued The Organization is subject to certain business risks that could affect net assets. These risks include geographic concentrations in the following developing countries as of June 30: Country Bangladesh 100% 79% Haiti 21% Note 7 Gifts in Kind The Organization receives contributions of clothing, health supplies, and other commodities for use in its various programs and medicines at significantly below fair value. Such gifts are recorded as inventory and revenue at the time received and as a reduction of inventory and as a program services expense when the distributing agency has received the goods. These gifts are recorded at their fair value based on product like kind analysis and current estimated wholesale prices as available. Gifts in kind (GIK) are recorded in accordance with U.S. GAAP and in consideration of Accord GIK Interagency Standards. The Organization obtains deworming medicine that is distributed to children and adults in Haiti and several countries in Africa and Asia. The Organization purchases this deworming medicine and records such purchases at cost and books any difference between cost and fair value as a contribution, where fees paid are significantly below fair values, per applicable accounting standards. The Organization obtains market data that it believes is representative of the fair value for the deworming medicine it distributes in multiple relevant international markets. Such industry standards are subject to review and adjustment; therefore, estimates of the fair value of donated medicines may vary in the future. World Concern only records the value of GIK for which World Concern was the original recipient of the gift, was the end use agency, was involved in partnership with another organization for distribution internationally, or used the GIK in its own programs. A summary of GIK revenues is as follows for the years ended June 30: Medicines and medical supplies $ 15,667 $ 10,002 Advertising 458 278 Other 94 49 Clothing 13 348 Total Gifts in Kind $ 16,232 $ 10,677 For the year ended June 30, 2016, the Organization distributed approximately 14.2 million deworming pills to children and adults in several countries compared to approximately 8.8 million pills distributed during the year ended June 30, 2015. Of the total GIK for both years ended June 30, 2016 and 2015, 96% and 94%, respectively, came from a single source. 13
Notes to Consolidated Financial Statements Note 8 Commitments and Contingencies Leases The Organization is obligated under various operating leases for office equipment. Lease expense for both years ended June 30, 2016 and 2015, was approximately $1,400. Future minimum payments for operating leases that have initial or remaining noncancelable lease terms in excess of one year total approximately $350 and are due during the year ending June 30, 2017. Employee Retirement Benefits CRISTA offers a Section 403(b) savings plan to eligible employees, including employees of the Organization. Employees may contribute amounts from their salaries to the plan up to the limits specified by the IRS. The Organization contributes 3% of the employee s earnings annually to each eligible employee s account. The Organization matches up to 4% additional contributions to an eligible employee s account based upon years of service to CRISTA. Employer provided funds are vested to the employee at 20% per year until fully vested after five years. Total employer contributions for the Organization s employees for the years ended June 30, 2016 and 2015, were approximately $59,000 and $55,000, respectively. Contingencies Amounts received under federal grant in aid programs are subject to audit and adjustment by the granting agency. Any adjusted amounts, including funds already received, may constitute a liability of the Organization. Management believes adjustments required, if any, as a result of audits will not have a material effect on the Organization s financial position or results of activities. In the normal course of business, the Organization has various claims in process, matters in litigation, and other contingencies. In management s opinion, the outcome from these matters will not materially impact the Organization s financial position or results of activities. Note 9 Intra Organization Transactions In the normal course of business, the Organization enters into transactions with CRISTA Ministries to maximize operating efficiency. Expenses related to these transactions are determined based upon actual costs related to the services provided. The following is a summary of expenses incurred in transactions with CRISTA Ministries for the years ended June 30: Expenses Fundraising services $ 2,545 $ 2,615 Management services 4 35 Accounting, donation receipting and auditing 316 301 Office space 96 92 Computer services 93 60 Personnel/legal services 71 66 Mailroom services 29 26 Marketing 228 111 Faith engagement 110 96 Other 12 11 Total Expenses $ 3,504 $ 3,413 14
Notes to Consolidated Financial Statements Note 9 Continued Contributions From CRISTA Ministries As of June 30, 2016 and 2015, contributions totaling $2,192,000 and $1,891,000, respectively, were received at CRISTA that were designated for World Concern and thus are reflected as receivable from CRISTA Ministries on the consolidated balance sheets. The Organization transferred $9,000 of its investments to CRISTA Ministries during the year ended June 30, 2016, to be managed with the CRISTA portfolio. 15
SUPPLEMENTARY INFORMATION
Consolidated Schedule of Functional Expenses For the Year Ended June 30, 2016 Relief and Development Fundraising Management Services and Promotion and General Total Salaries $ 4,067 $ 23 $ 432 $ 4,522 Payroll taxes 131 2 35 168 Employee benefits 595 3 58 656 Professional services 80 1 11 92 Advertising and promotion 5 5 Office expenses 212 81 27 320 Information technology 47 3 50 Occupancy 393 393 Travel 805 2 41 848 Conferences and training 330 1 27 358 Depreciation 15 15 Insurance 4 2 44 50 Dues and fees 37 2 48 87 Purchased services 2,942 560 3,502 Program supplies 19,197 1 19,198 Total Expenses $ 25,913 $ 3,059 $ 1,292 $ 30,264 See independent auditor s report. 16
Consolidated Schedule of Functional Expenses For the Year Ended June 30, 2015 Relief and Development Fundraising Management Services and Promotion and General Total Salaries $ 4,522 $ $ 564 $ 5,086 Payroll taxes 160 25 185 Employee benefits 827 37 864 Professional services 89 69 158 Advertising and promotion 19 19 Office expenses 417 26 443 Information technology 65 65 Occupancy 509 509 Travel 1,273 25 1,298 Conferences and training 149 26 175 Depreciation 12 12 Insurance 22 52 74 Dues and fees 47 34 81 Purchased services 46 2,900 402 3,348 Program supplies 14,831 66 7 14,904 Total Expenses $ 22,988 $ 2,966 $ 1,267 $ 27,221 See independent auditor s report. 17
Consolidating Balance Sheet June 30, 2016 Assets World Concern World Development Consolidation/ Concern Organization Eliminations Total Current Assets: Cash and cash equivalents $ 4,566 $ 9 $ $ 4,575 Grants receivable 105 32 137 Receivable from World Concern 35 (35) Receivable from CRISTA Ministries 2,192 2,192 Pledges receivable, net 228 228 Prepaid expenses and supplies 18 18 Total Current Assets 7,109 76 (35) 7,150 Long term pledges receivable, net 182 182 Property and equipment used in current ministries, net 143 143 Development loans receivable, net 3,077 3,077 Overseas assets 188 188 Total Assets $ 10,699 $ 76 $ (35) $ 10,740 Liabilities and Net Assets Current Liabilities: Accounts payable and accrued expenses $ 2,370 $ 11 $ $ 2,381 Payable to World Concern Development Organization 35 (35) Total Current Liabilities 2,405 11 (35) 2,381 Net Assets: Unrestricted General 2,403 8 2,411 Represented by property and equipment owned by the Organization 143 143 Total unrestricted assets 2,546 8 2,554 Temporarily restricted Restricted for program activities 5,748 57 5,805 Total Net Assets 8,294 65 8,359 Total Liabilities and Net Assets $ 10,699 $ 76 $ (35) $ 10,740 See independent auditor s report. 18
Consolidating Schedule of Activities For the Year Ended June 30, 2016 World Concern World Development Concern Organization Total Revenues, Gains and Losses: Contributions $ 5,523 $ 538 $ 6,061 Contributions released from restrictions 7,052 43 7,095 Gifts in kind 16,232 16,232 Government grants 214 214 Income on investments and loans 914 914 Foreign currency exchange losses (178) (178) Miscellaneous income 31 31 Total Revenues, Gains and Losses 29,574 795 30,369 Expenses: Program services Program 9,282 399 9,681 Gifts in kind 16,232 16,232 Total program services 25,514 399 25,913 Supporting services Fundraising and promotion 3,059 3,059 Management and general 988 304 1,292 Total supporting services 4,047 304 4,351 Total Expenses 29,561 703 30,264 Change in Unrestricted Net Assets 13 92 105 Temporarily Restricted Net Assets: Contributions 6,881 50 6,931 Loss from micro enterprise loan program (262) (262) Contributions released from restrictions (7,052) (43) (7,095) Change in Temporarily Restricted Net Assets (433) 7 (426) Total Change in Net Assets (420) 99 (321) Net assets, beginning of year 8,714 (34) 8,680 Net Assets, End of Year $ 8,294 $ 65 $ 8,359 See independent auditor s report. 19
WORLD CONCERN DEVELOPMENT ORGANIZATION Schedule of Functional Expenses For the Year Ended June 30, 2016 Relief and Development Management Services and General Total Salaries $ 74 $ 147 $ 221 Employee benefits 4 4 Professional services 7 1 8 Office expenses 7 14 21 Information technology 5 5 Occupancy 5 11 16 Travel 17 6 23 Conferences and training 1 6 7 Insurance 4 4 Dues and fees 30 30 Purchased services 80 80 Program supplies 284 284 Total Expenses $ 399 $ 304 $ 703 See independent auditor s report. 20